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QuickLogic Announces Fourth Quarter and Fiscal 2015 Results

SUNNYVALE, CA -- (Marketwired) -- Feb 10, 2016 -- QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low power programmable sensor processing, display bridge, and programmable logic solutions, today announced the financial results for its fourth quarter and fiscal year ended January 3, 2016.

Total revenue for the fourth quarter of 2015 was $3.6 million, representing a decrease of 13% compared to $4.2 million in the third quarter of 2015. New product revenue for the fourth quarter of 2015 was $2.1 million, a decrease of 28% compared to $2.9 million in the third quarter of 2015. Total revenue for the fiscal year 2015 was down 32% at $19.0 million, compared with total revenue of $28.0 million in 2014. In 2015, new product revenue was down 38% at $12.0 million, compared with new product revenue of $19.3 million in 2014.

"We have been transitioning from a low power programmable logic company to a Sensor Processing Solution company," said Andy Pease, QuickLogic's CEO and President. "The progress we have made with the new EOS S3 platform has been strong, and the traction with large OEM customers is very encouraging. Today's conference call will include some significant updates towards realizing our strategic goals."

Non-GAAP net loss for the fourth quarter of 2015 was $4.3 million, or $0.08 per share, compared with a non-GAAP net loss of $4.5 million, or $0.08 per share, in the third quarter of 2015 and a non-GAAP net loss of $3.7 million, or $0.06 per share, in the fourth quarter of 2014. Under generally accepted accounting principles in the United States of America (GAAP), the net loss for the fourth quarter of 2015 was $4.8 million, or $0.09 per share, compared with a net loss of $5.1 million, or $0.09 per share, in the third quarter of 2015 and a net loss of $4.1 million, or $0.07 per share, in the fourth quarter of 2014.

Non-GAAP net loss for 2015 was $15.5 million, or $0.28 per share, compared with a non-GAAP net loss of $10.8 million, or $0.19 per share, in 2014. GAAP net loss for 2015 was $17.8 million, or $0.32 per share, compared with a net loss of $13.1 million, or $0.23 per share, in 2014.

Pursuant to the restructuring plan implemented in the second quarter, the Company recorded additional restructuring charges of $49,000 during the fourth quarter of 2015. For the fiscal year 2015, the Company recorded total restructuring charges of $295,000, consisting primarily of severance related costs and Canada subsidiary closing costs.

Conference Call

QuickLogic (NASDAQ: QUIK) will hold a conference call at 2:30 p.m. Pacific Standard Time/5:30 p.m. Eastern Standard Time today, February 10, 2016, to discuss its current financial results. The conference call is being webcast and can be accessed via QuickLogic's website at www.quicklogic.com. To join the live conference, you may dial (877) 377-7094 by 2:20 p.m. Pacific Standard Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (404) 537-3406 and reference the passcode: 39854382. The call recording will be archived until Wednesday, February 17, 2016 and the webcast will be available for 12 months.

About QuickLogic

QuickLogic Corporation is the leading provider of ultra-low power, customizable Sensor Hub, Display, and Connectivity semiconductor solutions for smartphone, tablet, wearable, and mobile enterprise OEMs. Called Customer Specific Standard Products (CSSPs), these programmable 'silicon plus software' solutions enable our customers to bring hardware-differentiated products to market quickly and cost effectively. For more information about QuickLogic and CSSPs, visit www.quicklogic.com. CODE: QUIK-G

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with GAAP, but believes that non-GAAP financial measures are helpful in evaluating its operating results and comparing its performance to comparable companies. Accordingly, the Company excludes charges related to stock-based compensation, restructuring, the effect of the write-off of long-lived assets and the tax effect on other comprehensive income in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. The Company provides this non-GAAP information to enable investors to evaluate its operating results in a manner similar to how the Company analyzes its operating results and to provide consistency and comparability with similar companies in the Company's industry.

Management uses the non-GAAP measures, which exclude gains, losses and other charges that are considered by management to be outside of the Company's core operating results, internally to evaluate its operating performance against results in prior periods and its operating plans and forecasts. In addition, the non-GAAP measures are used to plan for the Company's future periods, and serve as a basis for the allocation of Company resources, management of operations and the measurement of profit-dependent cash and equity compensation paid to employees and executive officers.

Investors should note, however, that the non-GAAP financial measures used by QuickLogic may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. QuickLogic does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of GAAP financial measures to non-GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures with their most directly comparable GAAP financial measures.

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements. Actual results could differ materially from the results described in these forward-looking statements. Factors that could cause actual results to differ materially include: delays in the market acceptance of the Company's new products; the ability to convert design opportunities into customer revenue; our ability to replace revenue from end-of-life products; the level and timing of customer design activity; the market acceptance of our customers' products; the risk that new orders may not result in future revenue; our ability to introduce and produce new products based on advanced wafer technology on a timely basis; our ability to adequately market the low power, competitive pricing and short time-to-market of our new products; intense competition, including the introduction of new products by competitors; our ability to hire and retain qualified personnel; changes in product demand or supply; capacity constraints; and general economic conditions. These factors and others are described in more detail in the Company's public reports filed with the Securities and Exchange Commission, including the risks discussed in the "Risk Factors" section in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Company's prior press releases.

QuickLogic is a registered trademark and the QuickLogic logo and EOS are trademarks of QuickLogic Corporation.

                                                                            
                           QUICKLOGIC CORPORATION                           
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                  (In thousands, except per share amounts)                  
                                (Unaudited)                                 
                                                                            
                         Three Months Ended                Year Ended       
                 ----------------------------------  ---------------------- 
                 January 3,   December    September  January 3,   December  
                    2016      28, 2014    27, 2015      2016      28, 2014  
                 ----------  ----------  ----------  ----------  ---------- 
Revenue          $    3,630  $    5,721  $    4,194  $   18,956  $   27,845 
Cost of revenue,                                                            
 excluding                                                                  
 inventory write-                                                           
 down                 2,134       3,487       2,951      11,182      16,678 
Inventory write-                                                            
 down                   215          22           1         229         118 
                 ----------  ----------  ----------  ----------  ---------- 
Gross profit          1,281       2,212       1,242       7,545      11,049 
Operating                                                                   
 expenses:                                                                  
Research and                                                                
 development          3,490       3,432       3,684      14,144      12,186 
Selling, general                                                            
 and                                                                        
 administrative       2,461       2,771       2,508      10,619      11,663 
  Restructuring                                                             
   cost                  49          --          77         295          -- 
                 ----------  ----------  ----------  ----------  ---------- 
  Total operating                                                           
   expense            6,000       6,203       6,269      25,058      23,849 
                 ----------  ----------  ----------  ----------  ---------- 
  Loss from                                                                 
   operations        (4,719)     (3,991)     (5,027)    (17,513)    (12,800)
Interest expense        (18)        (18)        (35)        (82)        (85)
Interest income                                                             
 and other                                                                  
 (expense), net          (9)        (47)        (39)       (107)       (126)
                 ----------  ----------  ----------  ----------  ---------- 
Loss before                                                                 
 income taxes        (4,746)     (4,056)     (5,101)    (17,702)    (13,011)
Provision for                                                               
 (benefit from)                                                             
 income taxes           100          86         (15)        146          68 
                 ----------  ----------  ----------  ----------  ---------- 
Net loss         $   (4,846) $   (4,142) $   (5,086) $  (17,848) $  (13,079)
                 ==========  ==========  ==========  ==========  ========== 
Net loss per                                                                
 share:                                                                     
  Basic          $    (0.09) $    (0.07) $    (0.09) $    (0.32) $    (0.23)
                 ==========  ==========  ==========  ==========  ========== 
  Diluted        $    (0.09) $    (0.07) $    (0.09) $    (0.32) $    (0.23)
                 ==========  ==========  ==========  ==========  ========== 
Weighted average                                                            
 shares:                                                                    
  Basic              56,729      55,982      56,588      56,472      55,401 
                 ==========  ==========  ==========  ==========  ========== 
  Diluted            56,729      55,982      56,588      56,472      55,401 
                 ==========  ==========  ==========  ==========  ========== 
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                               (In thousands)                               
                                (Unaudited)                                 
                                                                            
                                                  January 3,   December 28, 
                                                     2016        2014 (1)   
                                                 ------------  ------------ 
                      ASSETS                                                
Current assets:                                                             
  Cash and cash equivalents                      $     19,136  $     30,050 
  Accounts receivable, net                              1,601         1,552 
  Inventories                                           2,878         4,952 
  Other current assets                                  1,312         1,146 
                                                 ------------  ------------ 
    Total current assets                               24,927        37,700 
Property and equipment, net                             3,315         3,217 
Other assets                                              219           222 
                                                 ------------  ------------ 
TOTAL ASSETS                                     $     28,461  $     41,139 
                                                 ============  ============ 
       LIABILITIES AND STOCKHOLDERS' EQUITY                                 
Current liabilities:                                                        
  Trade payables                                 $      4,032  $      2,506 
  Accrued liabilities                                   1,456         1,574 
  Deferred Revenue                                         26            -- 
  Current portion of capital lease obligations            281           225 
                                                 ------------  ------------ 
    Total current liabilities                           5,795         4,305 
Long-term liabilities:                                                      
  Revolving line of credit                              2,000         1,000 
  Capital lease obligations, less current portion         208           191 
  Other long-term liabilities                             133            76 
                                                 ------------  ------------ 
    Total liabilities                                   8,136         5,572 
                                                 ------------  ------------ 
Stockholders' equity:                                                       
  Common stock, at par value                               57            56 
  Additional paid-in capital                          241,024       238,419 
  Accumulated deficit                                (220,756)     (202,908)
                                                 ------------  ------------ 
    Total stockholders' equity                         20,325        35,567 
                                                 ------------  ------------ 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $     28,461  $     41,139 
                                                 ============  ============ 

________________________

(1)  Derived from the December 28, 2014 audited balance sheet included in   
     the 2014 Annual Report on Form 10-K of QuickLogic Corporation.         
                                                                            
                                                                            
                                                                            
                           QUICKLOGIC CORPORATION                           
    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES    
                  (In thousands, except per share amounts)                  
                                (Unaudited)                                 
                                                                            
                           Three Months Ended               Year Ended      
                   ---------------------------------  --------------------- 
                   January 3,   December   September  January 3,   December 
                      2016      28, 2014   27, 2015      2016      28, 2014 
                   ----------  ---------  ----------  ----------  --------- 
GAAP loss from                                                              
 operations        $   (4,719) $  (3,991) $   (5,027) $  (17,513) $ (12,800)
 Adjustment for                                                             
  stock-based                                                               
  compensation                                                              
  within:                                                                   
  Cost of revenue          14         27          29         109        137 
  Research and                                                              
   development            213        174         210         826        924 
  Selling, general                                                          
   and                                                                      
   administrative         306        291         240       1,065      1,181 
 Adjustment for the                                                         
  write-off of                                                              
  equipment within:                                                         
  Cost of revenue          --         --           8           8         -- 
 Selling, general                                                           
  and                                                                       
  administrative           --         --          --          --          5 
 Adjustment for                                                             
  restructuring                                                             
  costs                    49         --          77         295         -- 
                   ----------  ---------  ----------  ----------  --------- 
Non-GAAP loss from                                                          
 operations        $   (4,137) $  (3,499) $   (4,463) $  (15,210) $ (10,553)
                   ==========  =========  ==========  ==========  ========= 
GAAP net loss      $   (4,846) $  (4,142) $   (5,086) $  (17,848) $ (13,079)
 Adjustment for                                                             
  stock-based                                                               
  compensation                                                              
  within:                                                                   
  Cost of revenue          14         27          29         109        137 
  Research and                                                              
   development            213        174         210         826        924 
  Selling, general                                                          
   and                                                                      
   administrative         306        291         240       1,065      1,181 
 Adjustment for the                                                         
  write-off of                                                              
  equipment within:                                                         
  Cost of revenue          --         --           8           8         -- 
  Selling, general                                                          
   and                                                                      
   administrative          --         --          --          --          5 
 Adjustment for                                                             
  restructuring                                                             
  costs                    49         --          77         295         -- 
                   ----------  ---------  ----------  ----------  --------- 
Non-GAAP net loss  $   (4,264) $  (3,650) $   (4,522) $  (15,545) $ (10,832)
                   ==========  =========  ==========  ==========  ========= 
GAAP net loss per                                                           
 share             $    (0.09) $   (0.07) $    (0.09) $    (0.32) $   (0.23)
 Adjustment for                                                             
  stock-based                                                               
  compensation           0.01       0.01        0.01        0.04       0.04 
 Adjustment for the                                                         
  write-off of                                                              
  equipment                --         --           *           *         -- 
 Adjustment for                                                             
  restructuring                                                             
  costs                     *         --           *           *         -- 
                   ----------  ---------  ----------  ----------  --------- 
Non-GAAP net loss                                                           
 per share         $    (0.08) $   (0.06) $    (0.08) $    (0.28) $   (0.19)
                   ==========  =========  ==========  ==========  ========= 
GAAP gross margin                                                           
 percentage              35.3%      38.7%       29.6%       39.8%      39.7%
 Adjustment for                                                             
  stock-based                                                               
  compensation            0.4%       0.4%        0.7%        0.6%       0.5%
 Adjustment for the                                                         
  write-off                                                                 
  equipment                --%        --%        0.2%          *         --%
                   ==========  =========  ==========  ==========  ========= 
Non-GAAP gross                                                              
 margin percentage       35.7%      39.1%       30.5%       40.4%      40.2%
                   ==========  =========  ==========  ==========  ========= 

* Figures were not considered for reconciliation due to the insignificant amount.

                                                                            
                           QUICKLOGIC CORPORATION                           
                              SUPPLEMENTAL DATA                             
                                 (Unaudited)                                
                                                                            
                          Percentage of Revenue           Change in Revenue 
                 --------------------------------------- -------------------
                                                          Q3 2015           
                                       Fiscal    Fiscal      to     2014 to 
                  Q4 2015   Q3 2015     2015      2014    Q4 2015     2015  
                 --------- --------- --------- --------- --------- ---------
COMPOSITION OF                                                              
 REVENUE                                                                    
Revenue by                                                                  
 product: (1)                                                               
  New products         57%       68%       63%       69%     (28)%     (38)%
  Mature products      43%       32%       37%       31%       17%     (19)%
Revenue by                                                                  
 geography:                                                                 
  Asia Pacific         64%       73%       67%       72%     (24)%     (37)%
  Europe               13%       11%       10%       12%        5%     (45)%
  North America        23%       16%       23%       16%       20%        3%

_____________________

(1)  New products include all products manufactured on 180 nanometer or     
     smaller semiconductor processes. Mature products include all products  
     produced on semiconductor processes larger than 180 nanometers.        
                                                                            

Contacts:
Andrew J. Pease
President and Chief Executive Officer
(408) 990-4000

Email Contact

Andrea Vedanayagam
(408) 656-4494

Email Contact